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24 April 2013
Galveston Resident Sent to Prison for Possessing Child PornographyRead the Press Release
GALVESTON, Texas – Aurelio J. Ariaz, 27, has been ordered to prison for more than eight years following his conviction of possession of child pornography, United States Attorney Kenneth Magidson announced today. Ariaz entered a plea of guilty to the charge on Nov. 14, 2012.
Today, U.S. District Judge Gregg Costa handed Ariaz a total federal prison term of 97 months. The sentence will be immediately followed by a term of 15 years on supervised release during which he must comply with a number of special conditions designed to protect children and prohibit the use of the Internet. He will also have to register as a sex offender and must pay $2,000 in restitution.
The investigation began when in 2011 when officers with the U.S. Secret Service and Pearland Police Department both downloaded videos and images containing child pornography from a computer later found to be located at the residence of Ariaz in Galveston.
Agents executed a federal search warrant on Oct. 14, 2011, at which time Ariaz indicated he knew why they were at the residence. Ariaz admitted to using a peer-to-peer file sharing program to download child pornography for approximately two years, that he possessed nearly 500 images and videos and that they would be in his file sharing program. Ariaz also said most of images would be of boys 12-13 years old but that he may have some as young as 7-8 years old. A Dell computer and an HTC MyTouch cell phone were seized at that time.
A forensic exam was conducted which resulted in the discovery of approximately 852 images and 519 videos of child pornography. Forensics agents found at least 10 images of child pornography had been downloaded using the file sharing program as late as Oct. 1, 2011. These images depicted prepubescent and pubescent males in a lascivious display of their genitals.
The charges against Ariaz were the result of an investigation conducted Homeland Security Investigations, U.S. Secret Service and Pearland Police Department in conjunction with the Houston Metro Internet Crimes Against Children Task Force. Ariaz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Frederick Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland –U.S. District Judge William D. Quarles Jr. sentenced Emil Moldovan, age 40, of Frederick, Maryland, today to 10 years in prison followed by lifetime supervised release for possessing child pornography. Judge Quarles also ordered that upon his release from prison, Moldovan must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to his plea agreement, on June 28, 2011 an undercover internet investigation identified an image of child pornography being downloaded from a computer at Moldovan’s address. A search warrant was executed at Moldovan’s residence and law enforcement seized computers and storage media containing over 600 videos and images of child pornography. The depictions included images of children under 12 engaged in sexual conduct, including sadistic conduct and other depictions of violence.
Moldovan stated that he had been downloading child pornography and since his internet service was too expensive, he had cancelled it and was connecting to the internet via an open wireless connection he located in his neighborhood.
Moldovan had previously been convicted in January 2007 in Frederick County Circuit Court of distributing and promoting child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Fort Myers Man Indicted in Federal Court for Cocaine DistributionRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the return by a grand jury of an indictment charging Dominique Lamar Williams (36, Fort Myers) with two counts of distributing cocaine. If convicted, he faces a maximum penalty of 30 years in federal prison on each count. Williams has been detained pending the disposition of the charges.
According to the indictment, on two different occasions Williams sold cocaine base, also known as crack cocaine, to an undercover Lee County Sheriff's Office detective. An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation Violent Crime Task Force, which includes members from the Lee County Sheriff's Office, the Cape Coral Police Department, the Collier County Sheriff's Office, and the Fort Myers Police Department. It will be prosecuted by Assistant United States Attorney Tama Koss Caldarone.
Former Portland Police Officer Sentenced to Five Years in Child Porn CaseRead the Press Release
PORTLAND, Ore. - A former Portland Police Bureau Officer was sentenced to five years in federal court today for receiving child pornography. Scott Edward Elliott, 51, pleaded guilty, admitting that in the fall of 2009, he received several images of child sexual abuse during a yahoo chat session. Several of those images involved infants, and children under the age of 8 subjected to masochistic sexual contact by adult males. According to the prosecutor, Assistant U. S. Attorney Kelly Zusman, Elliott’s chat logs reveal that he “enthusiastically” received the images, and asked for more.
Elliott was arrested in March of 2011 as the result of an on-line, undercover operation in which a Multnomah County detective posed as an underage girl in a romance chat room. Elliott spent several months engaging in online sexual conversations with the detective posing as the girl, and he encouraged her to watch him on a webcam and to sexually stimulate herself while she did so. Eventually, Elliott tried to arrange a meeting, and he urged the girl to send him a nude photo of herself. He was arrested shortly thereafter, and officers discovered a thumb drive in his pocket that contained images of child sexual abuse. State charges were eventually dismissed in lieu of the federal prosecution. Elliott voluntarily agreed to resign from the Portland Police Bureau, and he has remained in federal custody since his arrest. In imposing sentence, Judge Anna J. Brown noted Elliott’s “long, decorated service as a Portland officer,” and commented that he had done everything he could to “atone” for his conduct. Elliott will serve a five-year term of supervised release after his prison term, and will be required to register as a sex offender.
The case was investigated by Multnomah County Sheriff’s Office and the INTERCEPT Task Force. Assistant U.S. Attorney Kelly Zusman handled the prosecution of the case.
Former Freeport Man Convicted of Witness RetaliationRead the Press Release
ROCKFORD — A former Freeport, Ill. man was convicted late yesterday of witness retaliation by a federal jury in U.S. District Court in Rockford following a two-day jury trial. DAMON RUCKER, 36, was found guilty of causing bodily injury to a witness on Dec. 20, 2012, with intent to retaliate against the witness for testifying against Rucker in federal court.
According to the indictment and evidence at trial, Rucker was initially convicted in federal court in Rockford on July 31, 2012, having pled guilty to a drug trafficking crime. A co-defendant, who also pled guilty in that case, agreed to cooperate with the government and testified against Rucker during Rucker’s sentencing hearing.
On Dec. 20, 2012, Rucker, with intent to retaliate against the co-defendant for testifying, slammed the witness’s head against a concrete wall while both were in custody. At the time, the victim was in the process of being transported to a different jail and was in hand and leg shackles. Rucker was not shackled at the time.
Rucker faces a maximum sentence of 40 years in prison, in addition to a term of supervised release of up to 5 years following his imprisonment, and a fine of up to $250,000. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines. Sentencing is scheduled for July 30, 2013, at 2:30 p.m. in federal court in Rockford.
The conviction was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The United States Marshals Service and the Ogle County Sheriff’s Office assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Scott R. Paccagnini and John G. McKenzie.
Former Freeport Man Convicted of Witness RetaliationRead the Press Release
ROCKFORD — A former Freeport, Ill. man was convicted late yesterday of witness retaliation by a federal jury in U.S. District Court in Rockford following a two-day jury trial. DAMON RUCKER, 36, was found guilty of causing bodily injury to a witness on Dec. 20, 2012, with intent to retaliate against the witness for testifying against Rucker in federal court.
According to the indictment and evidence at trial, Rucker was initially convicted in federal court in Rockford on July 31, 2012, having pled guilty to a drug trafficking crime. A co-defendant, who also pled guilty in that case, agreed to cooperate with the government and testified against Rucker during Rucker’s sentencing hearing.
On Dec. 20, 2012, Rucker, with intent to retaliate against the co-defendant for testifying, slammed the witness’s head against a concrete wall while both were in custody. At the time, the victim was in the process of being transported to a different jail and was in hand and leg shackles. Rucker was not shackled at the time.
Rucker faces a maximum sentence of 40 years in prison, in addition to a term of supervised release of up to 5 years following his imprisonment, and a fine of up to $250,000. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines. Sentencing is scheduled for July 30, 2013, at 2:30 p.m. in federal court in Rockford.
The conviction was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The United States Marshals Service and the Ogle County Sheriff’s Office assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Scott R. Paccagnini and John G. McKenzie.
Former Employee Charged with Embezzling over $700,000Read the Press Release
ATLANTA - Late Tuesday a federal grand jury returned a superseding indictment of DeMarco Doxie adding 26 counts of wire fraud relating to theft from his former employer. He was first indicted last month on 21 counts of mail fraud.
“While entrusted with an important position in his company, this defendant took advantage of and violated his employer’s trust, using his position to embezzle money on a routine basis over a long period of time,” said United States Attorney Sally Quillian Yates. “People who brazenly steal from their employers in this manner should expect to be held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: Doxie, 43, of Peachtree City, Ga., served as the Corporate Environmental Health & Safety Manager for Ennis Paint (currently known as Ennis-Flint). Ennis, headquartered in Dallas, Texas, manufactures and sells a variety of road marking and pavement surface treatments. Doxie worked at a facility Ennis maintains in Atlanta.
During more than four years of his employment, from June 2007 through August 2011, Doxie used Outlook Environmental & Safety Solutions, LLC - a sham business that he created and owned - as his main vehicle to systematically embezzle large sums of money from Ennis. Beginning in June 2007, Doxie created and submitted fictitious invoices for environmental work that Outlook had supposedly performed for Ennis. Doxie knew the work had not been performed and that there were no Outlook employees. Ennis was never informed that Doxie was the actual owner of Outlook, and would never have paid the invoices had it known.
The superseding indictment further charges that Doxie also defrauded Ennis by using an American Express Corporate Card issued by Ennis that was supposed to be used for Ennis’ expenses. Doxie used the American Express company credit card to make payments to Outlook even though Outlook had not performed any work for Ennis. Ennis paid the monthly bill on Doxie’s Corporate American Express card. Ennis would not have approved the payments had it known that Doxie was the true owner of Outlook.
In total, Doxie received more than $700,000 from Ennis as a result of his fraud schemes.
The indictment charges 21 counts of mail fraud and 26 counts of wire fraud. Each count carries a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Glenn D. Baker is prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Fitness Club Owner Sentenced to Life ImprisonmentRead the Press Release
Earlier today, Christian Tarantino, the owner of Synergy Fitness clubs on Long Island and New York City, was sentenced to three terms of life imprisonment without the possibility of parole for his role in the murders of three men between 1994 and 2003. The sentence was imposed by the Honorable Joanna Seybert, United States District Judge for the Eastern District of New York, at the United States Courthouse in Central Islip, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
Today’s proceeding marks the culmination of a lengthy investigation and prosecution by the U.S. Attorney’s Office, the FBI, the Nassau County Police Department (NCPD), and New York City Police Department (NYPD). Following jury trials in 2011 and 2012, Tarantino was convicted of participating in an armored car robbery in June 1994 during which a 47-year-old guard was shot and killed; orchestrating the August 1994 murder of an associate in that robbery, whose body Tarantino dumped from a boat several miles off the coast of Long Island; and, conspiring to murder a long-time confidant, who had threatened to take evidence of the first two murders to the FBI.
On June 23, 1994, Tarantino, Louis Dorval, and two others ambushed guards of the Mid-Island Check Cashing company as they delivered cash to a business in Syosset, New York. As Tarantino and his associates handcuffed one guard, Dorval shot and killed Julius Baumgardt in the back of the head as he lay face down on the pavement. Six weeks later, when federal law enforcement sought to arrest Dorval on charges in an unrelated racketeering indictment, Tarantino lured Dorval to his own death and with the help of others stuffed Dorval’s body in a plastic tool trunk that he then dumped at sea. A U.S. Coast Guard vessel pulled Dorval’s body out of the Atlantic several days later, but the investigations into both killings remained open.
In 2000, the U.S. Attorney’s Office, FBI, and NCPD, began to gather DNA evidence from several individuals. FBI forensic examiners subsequently found a match between Tarantino’s mitochondrial DNA and a hair fragment recovered six years earlier by the NCPD from a getaway car abandoned near the scene of the Baumgardt murder. The investigation also led to the arrest of an associate of Tarantino, who pled guilty in 2001 to engaging in a racketeering murder conspiracy to kill Dorval.
The collection of DNA evidence also led Tarantino’s long-time confidant, Vincent Gargiulo, to secretly tape-record a September 2000 conversation with Tarantino in an apparent effort to secure evidence that would prevent Tarantino or others from falsely implicating Gargiulo in either the Baumgardt or Dorval murders. In that recording, Tarantino implicated himself in both the Baumgardt murder and the killing and disposal of Dorval’s body. In 2003, Gargiulo revealed the existence of the recording to Tarantino and others and threatened to make the tape available to the FBI if he was not compensated for businesses losses. Thereafter, Garguilo wrote the FBI a letter offering to produce a tape that would prove Tarantino’s guilt in the two 1994 killings. However, before the FBI obtained the tape, Tarantino hired a Synergy Fitness gym employee to kill Gargiulo for $35,000. On the morning of August 18, 2003, as Gargiulo walked to work at a construction site Manhattan, that employee approached his victim and fired a single shot from a .22 caliber target pistol into the bridge of Gargiulo’s nose. Gargiulo was pronounced dead a short time later in Bellevue Hospital.
Several months later, Gargiulo’s tape recording was anonymously mailed to the homicide detectives of the NYPD. Analysis by the FBI’s forensic audio lab in Quantico, Virginia, confirmed its authenticity, and at the subsequent trials, juries heard Tarantino admit to his role in the armored car robbery and the subsequent dumping of Dorval’s body at sea.
In May 2011, a jury convicted Tarantino of participating in the murders of Julius Baumgardt and Louis Dorval, but failed to reach a verdict on the Gargiulo murder charges. Following a retrial, in May 2012, a second jury convicted Tarantino of conspiracy to murder Gargiulo to obstruct justice. Each of the counts of conviction carried mandatory life terms of imprisonment.
“For almost a decade, Christian Tarantino was a one man crime spree, engaging in armed robbery, murder, and murder conspiracy to cover his tracks. He controlled his confederates the old-fashioned way - by murdering them. As this investigation and prosecution demonstrate, law enforcement will never halt its efforts to ensure that murderers are brought to justice,” stated United States Attorney Lynch. “Tarantino thought that human life was his to take. He will now spend the rest of his life contemplating the just results of his actions.” Ms. Lynch extended her grateful appreciation to the Nassau County Police Department, the New York City Police Department, the New York County District Attorney’s Office, and the New York State Department of Corrections, Office of the Inspector General, for their assistance.
FBI Assistant Director-in-Charge Venizelos stated, “Because he ruthlessly took the lives of three others, Tarantino will spend the rest of his life behind bars. One victim was an innocent man doing his job, murdered in cold blood during a robbery. One was a robbery confederate of Tarantino whom he killed for fear of cooperation with the government. The third victim was also killed to silence him, when he threatened to expose Tarantino. This murderous conduct has been met with stern justice.”
The government’s case was prosecuted by Assistant United States Attorneys James M. Miskiewicz, Sean C. Flynn, and Carrie N. Capwell.
The Defendant:
CHRISTIAN GERALD TARANTINO
Age: 46Final Defendant Convicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
HOUSTON – Houston businessman Tony David Maldonado, 33, of Houston, has pleaded guilty in relation to a scheme to defraud residential mortgage lenders of more than $22 million in loans, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. Three others have already been convicted in the scheme, including attorney and former mortgage loan officer Buffy Marie Lawrence, Houston businessman Walter Ryan Macapaz and attorney and former title company escrow officer Lisa Carol Ross.
All pleaded guilty to conspiracy to commit wire fraud. Ross, 51, of Missouri City, was convicted in August 2012, while Lawrence, 41, and Macapaz, 35, both of Houston, pleaded guilty last Friday, April 19.
All were indicted in 2011 for a scheme to defraud residential mortgage lenders. The conspirators used fraudulent documents to help borrowers qualify for mortgage loans to purchase condominium units in the Commerce Towers building located on Main Street in downtown Houston as well as residential homes in the Houston area. The documents had false and misleading information about the borrowers’ income, assets, liabilities, employment status, bank deposits, rental payments, intent to use properties as a primary residence and source of funds used to close the real estate transactions.
Lawrence and Macapaz admitted they knowingly arranged for borrowers to submit the false documents to mortgage lenders in order to obtain loans, while Maldonado has now admitted he knowingly created some of the false documentation.
U.S. District Judge Gray Miller, who accepted all the pleas, has sentencing for Maldonado, Lawrence and Macapaz are set for Sept. 13, 2013. Lawrence, Macapaz and Maldonado were permitted to remain on bond pending their hearings. Ross is currently in custody on unrelated state charges where she will remain pending sentencing in this case by Judge Miller on May 17, 2013. They each face a maximum penalty of 20 years in prison and a $250,000 fine.
The investigation leading to the charges was conducted by the FBI, IRS-CI, Federal Deposit Insurance Corporation – Office of Inspector General and Houston Police Department. Assistant United States Attorney John Lewis is prosecuting the case.
Federal Jury Convicts Omaha Man Who Pointed Laser at AircraftRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael A. Smith, age 30 of Omaha, was convicted today by a federal jury for aiming a laser pointer at an aircraft. Smith was arrested after having been identified as the person using a laser pointer to strike Abel 1, the Omaha Police Department’s helicopter unit. The helicopter patrol had received a report in the early morning hours of July 11, 2012, that a Southwest Airlines flight scheduled for landing in Omaha had been struck by someone using a laser pointer. Abel 1 responded and was struck by a laser beam seconds after becoming airborne while heading in the direction provided by the Southwest pilot. As Abel 1 approached the area of 152nd Street in Northwest Omaha, the cockpit of Abel 1 was repeatedly struck by the laser to the point of causing the pilots of Able 1 to be distracted and temporarily blinded from the refraction of the laser beam. After being struck as many as six to seven times by the laser the pilots of Abel 1 were able to narrow the area from which the beam was coming. They then sought ground support from a Deputy Douglas County Sheriff who was able to locate Michael A. Smith in his back yard. Smith was actively aiming the laser pointer in the direction of the area where Abel 1 was hovering when contacted by the Deputy.
The case was tried in front of United States District Judge John Gerrard. Judge Gerrard set the sentencing of this matter for July 22, 2013. Smith was ordered detained by the United States Marshal’s pending sentencing. Aiming a laser at an aircraft is a felony punishable by up to five years in prison and/or a $250,000.00 fine.
In addition to the air patrol units of the Omaha Police Department and the Douglas County Sheriff’s Office, the case was also investigated by the Federal Bureau of Investigation.
Federal Inmate Indicted for Escaping from PrisonRead the Press Release
MINNEAPOLIS—Recently in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was indicted after being apprehended following six days on the run. On April 22, 2013, Michael Joseph Krzyzaniak, age 64, of Minneapolis, was indicted on one count of escape from custody.
The indictment alleges that on March 30, 2013, and continuing through April 5, 2013, Krzyzaniak was an escapee from the Federal Prison Camp in Duluth. He was serving a 151-month sentence for a 2012 conviction in the District of Minnesota for wire fraud and tax evasion. According to a law enforcement affidavit filed in the current case, Krzyzaniak was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. On April 5, law enforcement officials apprehended him at a hotel in Burnsville.
If convicted, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentences he is already serving. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on April 24, 2013: Trey Jackson, 24, and Deangelo Copeland, 36, both of Fort Wayne, Indiana were charged in 2 counts of a 3 count Indictment with armed bank robbery and use of a firearm during and in relation to a crime of violence on or about April 15, 2013, and Nicole Andrews, 35, of Fort Wayne, Indiana was charged in 2 counts of a 3 count Indictment with armed bank robbery and accessory after the fact on or about April 15, 2013. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Matthew Lester Vanschoick, 28, and Michael Clayton Bure, 26, both of Fort Wayne, Indiana, were charged in a single count Indictment with bank robbery on or about October 28, 2011. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force and the New Haven Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Executive Recruiter David Nosal Convicted of Computer Intrusion and Trade Secret ChargesRead the Press Release
SAN FRANCISCO - David Nosal, an executive recruiter based in San Francisco, was convicted of all charges in a six-count Indictment by a federal jury today, United States Attorney Melinda Haag announced.
The jury found that Nosal had conspired to gain unauthorized access to the computer system of his former employer, the executive search firm Korn/Ferry International, and to illegally obtain trade secrets belonging to Korn/Ferry. The jury also found Nosal guilty of three substantive computer intrusions in April and July 2005, and two substantives trade secret offenses that occurred in April 2005. The guilty verdict followed a two-week jury trial before U.S. District Court Judge Edward M. Chen.
Evidence at trial showed that Nosal, 55, of Danville, entered into an agreement with other Korn/Ferry employees in 2004 to take confidential and proprietary materials from Korn/Ferry’s computer system to be used in a new business that Nosal intended to establish with those individuals after he left Korn/Ferry’s employment in late 2004. The evidence showed that two of those employees downloaded large numbers of “source lists” (essentially, targeted lists of candidates developed by Korn/Ferry for the purpose of filling particular positions at particular client-companies) prior to their own departures from Korn/Ferry. Thereafter, those two employees used the Korn/Ferry log-in credentials of another conspirator who was still employed at Korn/Ferry to download additional source lists and other information from Korn/Ferry’s computer system in April and July 2005 for use in Nosal’s new business.
The trial in this case occurred after remand from the Ninth Circuit Court of Appeals, which had affirmed then-District Court Judge Marilyn H. Patel’s pre-trial dismissal of several computer intrusion counts.
Nosal was initially indicted by a federal grand jury on April 10, 2008. The government obtained superseding indictments on June 26, 2008 and February 28, 2013. In the most recent superseding indictment, Nosal was charged with one count of conspiracy, three counts of unauthorized access to a computer used in interstate or foreign commerce or communication, one count of unauthorized downloading and copying of trade secrets, and one count of unauthorized receipt and possession of stolen trade secrets. Nosal was found guilty on all six counts of this indictment.
The sentencing of Nosal is scheduled for September 4, 2013 before Judge Edward M. Chen in San Francisco. The maximum statutory penalty for the conspiracy charge in violation of Title 18, United States Code, Section 371 and the unauthorized access charges in violation of Title 18, United States Code, Section 1030(a)(4) is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for the trade secret charges is 10 years’ imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Kyle F. Waldinger and Matthew A. Parrella and U.S. Department of Justice Trial Attorney Jenny C. Ellickson are the attorneys who are prosecuting the case with the assistance of Rayneisha Booth, Elise Etter, Beth Margen, and Hui Chen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Eugene Ecstasy Dealer Sentenced to Four Years in PrisonRead the Press Release
EUGENE, Ore. – Walter Thomas Swartz, 29, of Eugene, Oregon, was sentenced On April 23, 2013, to 48 months in federal prison after pleading guilty to possession with intent to distribute methylenedioxymethamphetamine, more commonly known as ecstasy or MDMA, and using the mail to distribute proceeds of that unlawful activity.
In April 2012, investigators served a search warrant at Swartz’ home in Eugene and seized two and half pounds of ecstasy powder, 24 ecstasy pills, three pounds of dry psilocybin mushrooms, 27 grams of cocaine, four and half pounds of marijuana, a shotgun, a pistol and a mailed package containing $16,000 in cash.
The return address on the package containing the $16,000 led investigators to a man in Colorado who Swartz met ten years earlier while both attended college in Oregon. The man admitted mailing the $16,000 and mailing up to $10,000 in cash on at least five previous occasions, all at Swartz’ direction. The cash involved in the transactions was forfeited. Swartz is a 2007 graduate of the University of Oregon, with a Bachelor degree in Environmental Science and Environmental Geography.
Chief United States District Judge Ann Aiken presided over the case and during sentencing reprimanded defendant Swartz for creating more casualties for society by distributing illegal drugs. She also ordered Swartz to perform 300 hours of community service after completion of his four year prison sentence.
The U.S. Postal Inspection Service, Homeland Security Investigations and Drug Enforcement Administration worked with state and local police on the investigation. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Ernest Blackmon Sentenced to 30 Months for Federal Gun ChargeRead the Press Release
ERNEST BLACKMON, age 25, a resident of Chalmette, Louisiana, was sentenced to 30 months in federal prison by U. S. District Judge Helen G. Berrigan after he pleaded guilty to one-count of possession of a firearm by a convicted felon, announced U. S. Attorney Dana J. Boente. In addition to 30 months of incarceration, BLACKMON received three years of supervised release following his term of imprisonment.
According to court documents, the New Orleans Police Department stopped a vehicle for numerous traffic violations during a low speed car chase on December 3, 2011, in New Orleans. During the police encounter, BLACKMON, who was the driver of the vehicle, was found to be in possession of a Smith & Wesson, model SW40VE, .40 caliber pistol. His passenger, Jonathan Frank, was also found to be in possession of a firearm, has been convicted as a felon in possession of a firearm and sentenced to 46 months incarceration. Federal gun charges are still pending against the back seated passenger, Wayne Handy.
Court records revealed that BLACKMON was convicted on or about August 18, 2008, for the possession of crack cocaine, in Orleans Parish Criminal District Court, a felony punishable by more than one year of incarceration. As such, he was prohibited from possessing a firearm by both state and federal law.
The case was investigated by the Federal Bureau of Investigation Violent Crime Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the New Orleans Police Department. The matter was prosecuted by Assistant U. S. Attorney Edward J. Rivera.
Eight Charged with Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that seven individuals from South Dakota and one person from Minnesota have all been charged with the Unlawful Taking of Migratory Birds and Lacey Act Violations by an Information filed on March 25, 2013.
The individuals include:
• Jaron Anderson, age 22, Brookings
• Ben Burgess, age 29, Sioux Falls
• Nicholas Connor, age 20, Winfred
• Aaron Eich, age 28, Sioux Falls
• Scott Nenaber, age 34, Alpena
• Chris Paclik, age 21, Brookings
• Travis Vacek, age 32, Sioux Falls
• Austin Lueck, age 21, Lane Benton, Minnesota
Seven of the defendants appeared before U.S. Magistrate Judge John E. Simko on April 18, 2013 and pled not guilty to the charge. Nenaber made his initial appearance on April 19, 2013. The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution and a $25 special assessment may also be ordered.
The charge is merely an accusation, and they are all presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the cases.
All eight were released on bond pending trial, which has been set for June 25, 2013.
East Tawas Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A 47-year old East Tawas man pleaded guilty to willfully filing a false tax return for 2007, United States Attorney Barbara L. McQuade announced today.
Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation Division.
According to court records, during 2006 through 2009, Paul Galea was the manager and owner of G’s Pizzeria & Deli of East Tawas He gave incorrect information to his tax return preparer, underreporting his gross receipts, causing both his business tax returns and the personal tax returns to be false.
In addition, Galea admits that by failing to report all of the gross income during 2006 – 2009 he caused a tax loss to the United States in the amount of more than $80,000.
Galea entered the guilty plea in United States District Court before United States Magistrate Judge Charles E. Binder
"As filing season comes to an end this case serves as a reminder that it is important to note that those who do not file accurate returns and pay their fair share of taxes face severe consequences, in fairness to the vast majority of business owners that abide by the law," said Special Agent in Charge Erick Martinez.
Galea’s guilty plea will be considered by United States District Judge Thomas L. Ludington. If the plea is accepted Judge Ludington will sentence Galea at a hearing tentatively scheduled for August 1, 2013 at 3 pm.. The maximum penalty for filing a false tax return is imprisonment for not more than three years and a $250,000.The investigation of this case was conducted by special agents of the Internal Revenue Service, and prosecuted by Assistant U.S. Attorney Robert Haviland.
Detroit Home Health Company Employee Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
An employee of Detroit medical service companies that fabricated patient visit notes and other documents as part of a $24 million home health care fraud scheme pleaded guilty today for her role in the conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Dana Sharma, 30, of Detroit, pleaded guilty before U.S. District Judge Denise Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Sharma worked at purported home health companies, including First Choice Home Health Care Services Inc. and Reliance Home Care LLC, where she and other conspirators agreed to submit false and fraudulent claims to Medicare for home health services. Court documents reveal that, among other things, Sharma organized and maintained company patient files, knowing that these files contained falsified patient visit notes that created the false impression that home health care had been provided to patients. Sharma admitted that she knew that these documents would be used by these companies to submit claims to Medicare for home health services that were not medically necessary and/or not provided.
Court documents allege that between January 2007 and May 2012, Sharma’s conduct caused home health companies to submit claims to Medicare for services that were not medically necessary and/or not provided, which in turn caused Medicare to pay these companies approximately $923,286.
At sentencing, scheduled for Aug. 1, 2013, Sharma faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney William G. Kanellis and Deputy Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Contractors Sentenced for Paying Bribes to Former Broward County Traffic Director of EngineeringRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that Anthoneel Allen, 40, of Wellington, FL, and James Hashim, 50, of Plantation, FL, were sentenced today for conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and tax fraud, all in violation of Title 18, United States Code, Sections 371, before the Honorable Judge James A. Cohn. Allen received a sentence of 60 months imprisonment, three years of supervised release, a $15,000 fine, and a forfeiture judgment of $3,000,000 was ordered. As stated at the sentencing, Allen has already paid $814,000 to the government with respect to the forfeiture. Hashim received a sentence of 36 months imprisonment, three years of supervised release, a $15,000 fine, and a forfeiture judgment of $3,000,000 was ordered.
Allen and Hashim were charged in connection with a scheme wherein they paid bribes to Jihad El Eid, who was the Director of Traffic Engineering in the Division of Public Works in Broward County. As stated at the sentencing, the bribes paid by Allen and Hashim helped them secure approximately $26,000,000 in contracts from Broward County in which they obtained approximately $6,500,000 in benefits.
According to the documents previously filed with the court, Hashim and Allen admitted that beginning in the fall of 2006 through 2010, they provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at Southeast Underground Utilities (SUU) for Wael El Eid (a relative of Jihad El Eid) in order to curry favor with Jihad El Eid. In return, Jihad El Eid helped SUU obtain work on multi-million dollar projects initiated by the Broward County Traffic Engineering Division, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
City Woman Sentenced for Social Security Disability FraudRead the Press Release
Oklahoma City – ANTIGANEE TRIPLET, 39, from Oklahoma City, has been sentenced by United States District Judge Robin J. Cauthron to serve five years’ probation and pay $13,155.51 in restitution for defrauding the Social Security Administration (SSA) to receive disability benefits to which she was not entitled, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to Court records and information from the plea and sentencing hearings, Triplet claimed she was disabled and received SSA disability benefits from January of 2009 through January 2012. Triplet reported to SSA she was not employed during this time period when, in fact, she was working and earning income at several jobs.
Triplet was charged on January 8, 2013, and pled guilty on January 23, 2013, to illegally receiving Social Security disability benefits she was not entitled to receive. Judge Cauthron ordered Triplet to serve five years’ probation and pay $13, 155.51 in restitution to SSA.
This case was the result of an investigation conducted by the Social Security Administration Office of Inspector General and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
City of Miami Police Officer Harold James SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announced that Harold James, former City of Miami police officer, was sentenced yesterday by U.S. District Judge Robert N. Scola to fifteen (15) months imprisonment, as to each Count of the two-count Information, to be followed by two (2) years supervised release. The imposed sentence stems from charges of extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).
The FBI, working in conjunction with the City of Miami Police Department, initiated an investigation after receiving information that City of Miami police officers were facilitating illicit gambling activity taking place at Player’s Choice, a barber shop located in Miami.
In April 2012, during the course of the investigation, James met with and took a cash payment from a cooperating source for providing security at the gambling establishment. It was at this meeting that James was told of another illicit operation. James agreed to participate in the second scheme and agreed to take cash for his involvement.
On five separate occasions, James provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. James, in an effort to further facilitate the criminal activity, notified the cooperating source when there would be law enforcement activity in the area of the check cashing store. In exchange for providing security of the courier who was purportedly cashing fraudulent government checks at the check cashing store, James took receipt of approximately $800 cash.
U.S. Attorney Wifredo A. Ferrer stated, “The criminal conduct of this officer and other public officials undermines the public trust. This sentence sends a message to all public officials who commit crime that they are not above the law.”
“Law enforcement officers are in a position of public trust and therefore must be held to a high standard,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “James violated that trust and was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force and the City of Miami Police Department.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force, and the City of Miami Police Department. This case was prosecuted by Assistant U.S. Attorney Robin W. Waugh.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
California Man Indicted for Attempted Sexual Exploitation of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a California man has been indicted by a federal grand jury for Attempted Sexual Exploitation of a Child.
Thomas Tatar, age 26, was indicted by a federal grand jury on November 15, 2012. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 30 years’ in custody, 5 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Tatar is presumed innocent until and unless proven guilty. The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Tatar was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Brookline Man Pleads Guilty to Defrauding State Welfare DepartmentRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Kamil Al-Rifai, 56, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from on or about Feb. 9, 2012, and continuing to on or about Jan. 14, 2013, Al-Rifai defrauded the Pennsylvania Department of Public Welfare when he misrepresented that his dependent mother was residing at his home in his application for benefits.
Judge Schwab scheduled sentencing for Aug. 22, 2013. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Kamil Al-Rifai.
Bismarck Man Sentenced to Serve 15 Years for Possession of Firearm & Ammunition by Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 24, 2013, Jamie N. Nilsen, 28, Bismarck, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Nilsen pleaded guilty to the charge on Oct. 30, 2012.
Judge Hovland sentenced Nilsen to serve 15 years in federal prison, to be followed by three years of supervised release. Nilsen was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
During the early morning hours of April 25, 2012, Nilsen was engaged in an argument with a female at her residence in Bismarck, N.D. Nilsen brandished and discharged a .45 caliber handgun during the dispute in the garage of the girlfriend’s residence. Nilsen broke through the front door and entered the residence, still possessing the gun. At approximately 3:10 a.m., the Bismarck Police Department responded to a 911 call from the residence. Upon the arrival of the police, Nilsen entered a car with the gun and refused to comply with officer commands. The SWAT team and hostage negotiator came to the scene. At 6:54 a.m., Nilsen gave up the gun and surrendered.
Nilsen was prohibited from possessing a firearm by virtue of his seven prior felony convictions, including an aggravated assault conviction and two burglary convictions in 2004. Due to the fact that three or more of these convictions were “violent felony” convictions, the offense carried a maximum penalty of life imprisonment, and a minimum mandatory sentence of 15 years in federal prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Bismarck Police Department.
Assistant U.S. Attorney David Hagler prosecuted the case.
Binghamton Area Man Sentenced for $594,000 Theft and Tax EvasionRead the Press Release
United States Attorney, Richard S. Hartunian, announced that William P. Stiles, 43, of Deposit, Broome County, New York, was sentenced today in United States District Court to twenty four weekends of incarceration, and five years supervised release for the felony crimes of wire fraud and tax evasion.
Stiles was chief operating officer and part owner of Aeden Waterford, Inc. (AWI), a payroll and human services company located in the city of Binghamton. Stiles stole more than $500,000 from approximately 100 business clients of AWI between November, 2005, and November, 2010. The money stolen by Stiles was supposed to be used by Stiles to pay client employment withholding taxes, but instead was deposited by Stiles into Stiles’ personal bank accounts. Stiles used the funds stolen from AWI clients for his own personal benefit. Stiles further admitted he evaded income taxes due on the stolen money.
In addition to home confinement and supervised release, District Court Judge Thomas J. McAvoy ordered Stiles to pay $64,466.00 in back taxes to the Internal Revenue Service, and $529,607.29 in restitution to the victims of his crime.
The case was investigated by the Internal Revenue Service, Criminal Investigations, the Federal - Bureau of Investigation, Binghamton Resident Office, and was prosecuted by the U.S. Department of Justice, U.S. Attorney’s Office.
Bank Official Charged with Embezzling Funds, False Entry in Bank RecordsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on charges of bank embezzlement and false entry in bank records, United States Attorney David J. Hickton announced today.
The two-count indictment named Diana Phillips, 39, as the sole defendant.
According to the indictment, Phillips was an Assistant Branch Manager and Head Teller at First National Bank. Over a period of roughly three years, Phillips embezzled approximately $129,318.38 from the bank by processing fictitious general ledger transactions and making cash-in deposits into an account owned by a family member. The defendant then transferred money from the family member's account into accounts controlled by her and/or her husband.
The law provides for a maximum total sentence of 60 years in prison, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Donald Valeska Receives Award for Service to Victims During National Crime Victims’ Rights WeekRead the Press Release
Montgomery, Alabama - Assistant U.S. Attorney Donald Valeska was honored for outstanding service to crime victims in an awards ceremony hosted by the Wiregrass Angel House V.O.C.A.L. on April 23, 2013, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. This award was presented to Assistant U.S. Attorney Valeska for his unwavering support and demonstrated commitment on behalf of children, victims and law enforcement.
This award was presented in conjunction with the observance of National Crime Victims’ Rights Week, April 21-27. This year’s theme, “New Challenges. New Solutions,” celebrates the spirit that will advance the progress these heroes achieved. It also captures the spirit and highlights the need for us to assist and serve each and every victim in need of hope and help.
“The U.S. Attorney’s Office is deeply committed to assisting victims of federal crimes, ensuring they are afforded their rights under the Crime Victims’ Rights Act, protecting them from further harm, and helping them reshape their futures,” said U.S. Attorney George Beck, Jr. “This week is a time to raise awareness about the rights and needs of crime victims, the challenges victims face in the recovery process, and the positive impact of those who provide services and support to victims.”
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The Middle District of Alabama has a dedicated Victim Witness Unit that serves federal crime victims across the District’s 23 counties. Members of this unit notify victims of significant case events through the Department of Justice’s (DOJ) Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. According to Department of Justice Statistics, in Fiscal Year (FY) 2012, the U.S. Attorneys’ offices provided notice of over 12.2 million case events, including notices regarding criminal charges filed, plea hearings, bond hearings and sentencing hearings.
Notification of significant case events leads to increased victim participation in court proceedings. Court accompaniment helps ensure that victim participation in court proceedings is meaningful as Victim-Witness personnel can answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the Middle District of Alabama’s Victim Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at ovc.ncjrs.gov/ncvrw.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Antioch Woman Sentenced to 41 Months in Prison for Conspiring to File False Tax ReturnsRead the Press Release
SAN FRANCISCO – Charleszetta Brown, a/k/a Candice Taylor, was sentenced today to 41 months in prison and ordered to pay restitution of $318,000 for conspiring to file false tax returns United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martinez announced.
Brown pleaded guilty on December 19, 2012, to conspiring to file false claims in violation of 18 U.S.C. § 286. According to her plea agreement, beginning in June 2008, Brown participated in a scheme to obtain fraudulent tax refunds from the IRS by filing false tax returns. Brown knew the returns were false when she filed them because the individuals whose names appeared on the tax returns did not supply the information used to prepare the returns. Brown admitted that, in many instances the person whose name appeared on the return did not give permission to have the tax return filed at all. In order to carry out the scheme, Brown used her own bank account as well as bank accounts of others involved in the scheme to receive the fraudulent refunds. When the fraudulent tax refund was issued by the IRS, the money would be withdrawn by the account holder who split the proceeds with Brown.
As part of the scheme, Khendria Williams and Sparkle Jernigan supplied names for use in the false filings. The names were sent through text messages to Brown’s phone. In addition, Clexton Ward obtained names to use on the false tax returns as well as names of individuals whose bank account information could be used to receive the false refunds.
On April 17, 2012, Brown, 43, of Antioch, was indictment by a federal grand jury. She was charged with conspiracy to file false claims.
On Aug. 10, 2011, Jernigan, 33, of Pittsburg, Calif., was sentenced to 21 months in prison and ordered to pay restitution in the amount of $31,786.
On Feb. 15, 2012, Williams, 36, of Pittsburg was sentenced to 4 months in prison and 4 months of home confinement, and ordered to pay $17,600 in restitution.
On March 13, 2013, Ward was sentenced to 24 months in prison and ordered to pay $318,000 in restitution.
Assistant U.S. Attorney Thomas Newman and Special Assistant United States Attorney Charles Parker are prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
Alabama Man Sentenced to Federal Prison for Stolen Identity Refund FraudRead the Press Release
Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., was sentenced today to 51 months in prison, the Justice Department and the Internal Revenue Service (IRS) announced.
In January 2013, Blackmon pleaded guilty to aggravated identity theft and access device fraud. According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. He admitted to acquiring names and Social Security numbers, to using that identity information on false tax returns, and to directing fraudulent tax refunds onto debit cards. Blackmon also admitted to possessing at least 15 Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.
In addition to prison time, Blackmon was ordered to pay $197,839 in restitution to the IRS and to serve three years of supervised release following his release from federal custody.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and U.S. Attorney for the Middle District of Alabama George L. Beck Jr., commended the efforts of IRS – Criminal Investigation special agents in investigating the case, Tax Division Trial Attorneys Justin Gelfand and Jason Poole in prosecuting the case, and the Alabama Department of Pardons and Paroles and the Gwinnett County, Ala., Sheriff’s Department in Georgia in assisting federal authorities with the investigation.
Alabama Man Sentenced to Federal Prison for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., was sentenced today to 51 months in federal prison, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
In January 2013, Blackmon pleaded guilty to aggravated identity theft and access device fraud. According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. He admitted to acquiring names and Social Security numbers, to using that identity information on false tax returns, and to directing fraudulent tax refunds onto debit cards. Blackmon also admitted to possessing at least fifteen Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.
In addition to prison time, Blackmon was ordered to pay $197,839 in restitution to the IRS and to serve three years of supervised release following his release from federal custody.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and United States Attorney for the Middle District of Alabama George L. Beck, Jr., commended the efforts of IRS – Criminal Investigation special agents in investigating the case, Tax Division Trial Attorneys Justin Gelfand and Jason Poole in prosecuting the case, and the Alabama Department of Pardons and Paroles, the Gwinnett County Sheriff’s Department in Georgia and the United States Marshal Service in assisting federal authorities with the investigation.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-76172013 National Crime Victims’ Rights Week “new Challenges: New Solutions”Read the Press Release
United States Attorney Dana J. Boente announced that in celebration of National Crime Victims’ Rights Week, an information fair will be held at the New Orleans Healing Center on Saturday, April 27, 2013, from 10:00 a.m. to 2:00 p.m. The New Orleans Healing Center is located at 2371 St. Claude Avenue in New Orleans, LA. Federal and local agencies participating in the fair are the United States Attorney’s Office for the Eastern District of Louisiana, along with the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco and Firearms, the U.S. Immigration and Customs Service, the New Orleans Police Department, Jefferson Parish District Attorney’s Office, the Orleans Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. Representatives of each agency will be present to provide information about the rights of crime victims and to distribute written information to the public. There is no charge to attend the information fair. Video presentations concerning the theme, “New Challenges: New Solutions,” and an overview of the criminal justice system also will be presented.
National Crime Victims’ Rights Week began on April 21, 2013. It honors victims of crime and celebrates our nation’s progress in advancing their rights. This year’s theme, “New Challenges: New Solutions,” celebrates the vision behind that progress and the goal of providing needed services to all victims of crime. The vision that launched the victims’ rights movement emerged more than 30 years ago. Then, as now, crime victims endured physical and emotional wounds, financial burdens, an often hostile criminal justice system, and an alarming public tendency to blame them for the crimes against them. Often victims were excluded from courtrooms, treated with disrespect by officials, and afforded few rights. Crime victims then began organizing to confront these challenges and to promote fair, compassionate, and respectful responses to victims of crime.
Since the 1980s, the nation has made dramatic progress in securing rights, protections, and services for victims of crime. Every state has enacted victims’ rights laws, and the state constitutions of 32 states have victims’ rights amendments. All states have victim compensation funds, and more than 10,000 victim service agencies have been established throughout the country. The Office for Victims of Crime (OVC), U.S. Department of Justice, supports a range of programs for crime victims, and seeks to extend those services to those who are underserved.
Despite the progress, there still is much to do. Victims’ rights are not universally recognized by law and often the laws recognizing those rights are not enforced vigorously. Only a fraction of victims receive crime victim compensation, which is usually limited to victims of violent crime. Less than 50 percent of crimes are reported, and fewer than 20 percent of victims receive needed services. The victim services system is fragmented and uncoordinated, and agencies are struggling to provide needed services in the face of budget cuts. Still, victim advocates have not lost their resolve and continue to advocate for novel solutions to the challenges of according victims their rights.
2013 Crime Victim's Rights WeekRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to Assistant Jackson County Prosecutor Alison Dunning for her work on behalf of protecting children.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme, “New Challenges, New Solutions,” celebrates the spirit that will advance the progress these heroes achieved. It also captures the spirit and highlights the need for us to assist and serve each and every victim in need of hope and help.
“I have been a prosecutor the majority of my legal career, and I have seen first-hand the devastating effect crime has on victims and the need to ensure the rights of victims are respected,” Dickinson said. “I applaud those who work every day to ensure that the voice of the victim is heard at every stage in the legal process, in the hospital, in the police station and in the courtroom.
“We can’t turn back the clock to erase the tragedy suffered by victims of crimes,” Dickinson said in presenting the Crystal Kipper & Ali Kemp Memorial Award to Dunning. “What we can do – what we are committed to doing – is to pursue justice on their behalf. This award is intended to be a small reminder of both the value of justice and the pain shared by victims of crime.”
Dunning has devoted most of her 15-year career as a prosecutor to seeking justice on behalf of child victims. Most recently, Dunning was responsible for the successful prosecution of Matthew Nelson, an elementary school teacher in Grain Valley, Mo., who was convicted of 16 felony counts of statutory sodomy and child molestation. On March 13, 2013, Nelson pleaded guilty to all charges involving 11 child victims. He is scheduled to be sentenced on April 25, 2013.
“I know first-hand the difficulty of investigating and prosecuting these types of cases,” Dickinson said. “It takes an enormous amount of courage and dedication to prosecute child victim cases. It is heart-breaking enough to deal with adult victims of crimes, but when it comes to the most vulnerable victims, our children, it becomes even more horrendous.”
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to Dunning in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Anna Rhea, Kipper’s mother, participated in today’s presentation.
“By honoring these two young crime victims whose deaths profoundly touched us all,” Dickinson said, “we pay our respects to all victims of crime, as well as recognizing those who work diligently to prevent and bring justice to those who exploit children.
“Just as the Kipper and Kemp cases highlight the need to protect children from criminals who prowl our highways and neighborhoods,” she added, “Matthew Nelson’s case reminds us that child predators can be anywhere, even in our children’s schools.”
Today’s event at the KC Live Stage in the Power and Light District also featured comments from Jackson County Prosecutor Jean Peters Baker and Nathan Ross, a child abuse survivor and child welfare system advocate.
The event showcased a variety of art created by youth who participate in the MyARTS program, which serves at-risk teens. The event also included a showcase of various local victim service providers and a victims’ memorial walk led by the Kansas City Mounted Patrol.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
23 April 2013
Wood Co. Felon Pleads Guilty to Illegal Firearm PossessionRead the Press Release
Shaun Linko opened fire at a Lynn Street residence in Parkersburg
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Wood County man who opened fire at a Parkersburg residence in September 2012 pleaded guilty in court to a federal firearm violation. Shaun Michael Linko, 25, of Parkersburg, W.Va., pleaded guilty to being a felon in possession of a firearm.
On September 19, 2012, police in Parkersburg responded to a report of shots fired in the vicinity of 1122 Lynn Street. Upon their arrival, officers with the Parkersburg Police Department observed a large quantity of spent shell casings from a semi-automatic rifle in the street, along with apparent bullet holes in the exterior of the residence at 1122 Lynn Street. A short time later, Wood County deputy sheriffs observed a vehicle at the 7th Street Park and Ride, which is located a short distance from Lynn Street. As deputies approached the vehicle, they observed an ammunition box on the ground beside the driver’s side door. Police officers ordered the driver, Shaun Michael Linko, and a female passenger to exit the vehicle. Both individuals informed police that they were on Lynn Street earlier that same day.
Linko, who was arrested, told police he shot at the 1122 Lynn Street residence using his rifle. Officers recovered an assault rifle and loose ammunition from the defendant’s vehicle.
Linko was previously convicted in March 2010 in the Circuit Court of Wood County, West Virginia of conspiracy to deliver a controlled substance. The defendant did not have his rights to possess a firearm restored.
Linko faces up to 10 years in prison and a $250,000 fine when he is sentenced on August 27, 2013 by United States District Judge Thomas E. Johnston.
The investigation was conducted by the Parkersburg Police Department, the Wood County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case is also being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Wichita Tax Preparer Convicted of Filing False ReturnsRead the Press Release
WICHITA, KAN. – A Wichita tax preparer has been convicted on charges of filing false federal income tax returns, U.S. Attorney Barry Grissom said today.
Lata L. Tomlinson, 33, Wichita, Kan., was convicted on 19 counts of preparing false income tax returns for a total of 17 people during tax years 2007, 2008 and 2009.During trial, prosecutors presented evidence that Tomlinson had a college degree in accounting and worked for various tax preparation companies before starting her own business in 2006 called Talking Taxes And More.
In tax returns she prepared, she falsely stated deductions for depreciation, home improvements, business repairs, contract labor, legal fees, home repairs, medical expenses, advertising, insurance, car and truck expenses, hay and grain expenses, cell phones and care of dependents.
Sentencing is set for July 8. She faces a maximum penalty of three years in federal prison and a fine up to $100,000 on each count. Grissom commended the IRS - Criminal Investigation, Assistant U.S. Attorney Matt Treaster and Assistant U.S. Attorney Jason Hart for their work on the case.
Wheeling Man Sentenced for Illegal Possession of FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Defendant fired shot after fight in Downtown Wheeling
WHEELING, WEST VIRGINIA – A 33-year old Wheeling man was sentenced this week in United States District Court for possession of a handgun that he fired at another man following a fist fight last year.
U.S. Attorney William Ihlenfeld, II, announced that CORDALE A. WILLIAMS received a 65-month prison term as a result of his conviction for “Felon in Possession of a Firearm.” According to testimony offered in court, Wheeling Police officers responded to a gunshot being fired after midnight on June 22, 2012, outside of the 7-11 store on Market Street and upon arrival learned that WILLIAMS had been in a fight with another man over a woman. D uring the fight WILLIAMS pulled a gun out and fired it at the person with whom he was fighting. WILLIAMS then chased after the man before coming came back to the 7-11 and dropping the firearm on the ground. Much of the incident was captured by a surveillance camera that was located in the area.
WILLIAMS has a prior federal felony conviction for “Distribution of Crack Cocaine within 1,000 feet of a School”, and was on supervised release at the time of the shooting incident. For violating the terms of his release WILLIAMS was given 24 months but that sentence that was ordered to run at the same time as the 65-month term.
WILLIAMS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Jarod J. Douglas. It was investigated by the Wheeling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Western District of Louisiana U.S. Attorney Speaks at Local CollegeRead the Press Release
Lafayette/Alexandria/Lake Charles, La.: United States Attorney Stephanie A. Finley recently visited local colleges within the Western District of Louisiana. On April 9, 2013, U.S. Attorney Finley spoke to the Criminal Justice Society at the University of Louisiana at Lafayette, the Louisiana College Criminal Law Class on April 16, 2013, and the Juvenile Delinquency Class at McNeese State University on April 18, 2013.
Finley spoke to the students about her job as the chief law enforcement officer for 42 of the 64 parishes in the state of Louisiana and explained the daily work that she and her staff undertake in overseeing the investigation and litigation of all criminal and civil cases brought on behalf of the United States. U.S. Attorney Finley discussed with the students what is involved in prosecuting criminal activity to include terrorism, public corruption, complex white collar crime, investment schemes, organized crime and gang activities, civil rights, internet-related crimes, drug trafficking, firearms violations, violent crimes, environmental crimes, tax evasion, illegal immigration and alien smuggling and representing the United States in civil actions.
During her visits, the Louisiana educated U.S. Attorney encouraged students to reach for the stars, but also cautioned them about the pitfalls that prevent young people from reaching their goals, to include social media and allowing others to negatively influence their lives. Finley told the students that hard work and good grades are the best preparation for success, and she reminded them that they are the future of our nation.“I am honored to be invited by the faculty of these universities to speak to their students,” Finley said. “I have been extremely blessed. My life has been filled with great teachers, mentors, and wonderful parents. Now, I’ve got to pay it forward because the future leaders of our country are in those classrooms. Some of these kids just need a nudge; they just need some encouragement to know that the achievement of their dreams can happen. This is just a little something that I can do to assist in that process.”
For more information on the Western District of Louisiana U.S. Attorney’s Office, please visit www.justice.gov/usao-wdla.
Wadih El Hage Resentenced to Life in Prison for His Role in the 1998 Bombings of the American Embassies in Kenya and TanzaniaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WADIH EL HAGE, a United States citizen, was resentenced today in Manhattan federal court to life in prison for his participation in al Qaeda conspiracies to murder U.S. nationals and government employees that culminated in the 1998 bombings of the U.S. Embassies in Kenya and Tanzania, and for lying to the grand jury and to federal agents about his association with al Qaeda before and after the bombings took place. EL HAGE, 52, was convicted of conspiracies to kill U.S. nationals; to murder U.S. government employees and internationally protected persons; and to destroy buildings and property of the United States on May 29, 2001, following a six-month trial before U.S. District Judge Leonard B. Sand. The jury also convicted EL HAGE of multiple counts of perjury for lying to the grand jury about his knowledge of, and association with, al Qaeda and its leaders and members, and three counts of making false statements to FBI agents regarding the same. On October 18, 2001, Judge Sand, sentenced EL HAGE to life imprisonment.
On appeal, the Second Circuit upheld the conviction and remanded for resentencing in light of the Supreme Court’s decision in United States v. Booker, concerning the federal sentencing guidelines. EL HAGE was resentenced today by U.S. District Judge Lewis A. Kaplan.
Manhattan U.S. Attorney Preet Bharara stated: “Today’s resentencing confirms the outcome this Office worked to ensure: that Wadih El Hage will spend the rest of his life in prison for his involvement in an international conspiracy to murder Americans which spawned the 1998 bombings that killed 224 innocent people.”
According to evidence presented at trial and documents previously filed in Manhattan federal court:
EL HAGE was a high-ranking associate of Usama Bin Laden who performed key functions for al Qaeda to advance the organization's terrorist goals, including facilitating the bombing of the U.S. Embassies in Kenya and Tanzania, killing 224 people. Among other things, El HAGE disbursed the al Qaeda payroll, procured equipment for the organization, and operated al Qaeda businesses, which provided cover for operatives and generated cash for the organization. He also provided false identification documents to the group so that operatives could travel undetected and participated in secret meetings with al Qaeda leaders, after which he carried messages from Bin Laden to other members of the organization. In his capacity as one of the leaders of al Qaeda's East Africa cell, EL HAGE conveyed Bin Laden’s order that the cell – which played a key role in the 1998 Embassy Bombings – prepare for military action. Both before and after the bombings took place, EL HAGE obstructed the investigation into al Qaeda by repeatedly lying to a federal grand jury in the Southern District of New York concerning his knowledge of and involvement in al Qaeda.
Mr. Bharara praised the investigative efforts of the Federal Bureau of Investigation, the U.S. Department of Justice’s National Security Division, the Tanzanian National Police, and the Kenyan National Police.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Sean S. Buckley and Aimee Hector are in charge of the prosecution.
Vermilion Man Charged for Financial Schemes That Resulted in Nearly 100 Clients Losing $4.4 MillionRead the Press Release
A Vermilion man was charged with financial crimes that resulted in nearly 100 clients losing more than $4.4 million over a decade, law enforcement officials said today.
Richard A. Zakarian, age 47, is charged with two counts each of wire fraud and mail fraud and one count of making and subscribing false income tax returns. Zakarian was a certified financial planner and a self-employed tax preparer who owned and operated several business ventures.
The five-count information details two schemes by Zakarian – one to defraud investment clients (many of whom were also clients of his tax-preparation business), another to defraud clients whose payroll taxes he handled through a company known as Ben Franklin Payroll Service.
Many of the payroll tax victims were churches, charities and other non-profit organizations that Zakarian lured as clients through purported grants from charity he claimed to operate. The information further details Zakarian’s falsification of his tax returns to conceal his fraudulently generated income from the investment scheme.
“This defendant is accused of taking advantage of trust of dozens of clients, which ranged from homeless shelters and nursery schools to retirees and those with disabilities,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The conduct laid out here is as outrageous as it is predatory.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigations’ Cleveland Office, said: “Zakarian orchestrated multiple financial schemes that all had one common thread, monetary benefit to him. Authorities will continue to bring those to justice that choose to unlawfully violate the trust of their clients.”
“Investment fraud schemes are often described as a house of cards. The underlying structure can fall apart at any time and expose the individuals responsible," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Investment schemes that seem too good to be true should be a signal to investors to stay clear.”
The information filed in U.S. District Court details the following schemes:
THE INVESTMENT SCHEME
From September 2002 through August 2012, Zakarian devised a scheme to defraud investment clients by inducing them to invest their retirement funds, and occasionally other savings, through him as their account representative through false and fraudulent misrepresentations. He primarily targeted clients from his tax-preparation business when they received their tax refunds or sought his financial advice.
Zakarian misled clients to believe their funds would be placed in safe, guaranteed-return investments when, in fact, he diverted the funds to pay personal and business expenses and invested in risky investments for which he had a consistent history of incurring large losses.
Zakarian recruited 25 investment clients, often targeting tax preparation clients who he knew to have available funds and to be susceptible to his pitch through their prior relationship of trust in him.
hile some received a return on part or all of their investment, 23 clients incurred combined out-of-pocket losses of more than $1 million. In addition, the clients did not receive hundreds of thousands of dollars of gains on their investments that Zakarian falsely reported to them during the scheme.
A number of clients were retired, out of work, or nearing retirement. Most invested through Zakarian by moving their money from in traditional, relatively safe and dependable stocks, bonds and mutual funds.
In one case, Zakarian convinced a recently retired client to pay an early-withdrawal penalty to move money from a certificate of deposit purchased upon retirement. He induced another client to redeem a life insurance annuity to generate investment funds and talked her out of using the money to pay off her home mortgage or car loans.Until mid-2009, Zakarian obtained use of clients funds primarily by having them place their investments with companies offering self-directed IRA services, and then having those companies transfer the funds to Zakarian as investments in promissory notes he issued. Zakarian initially issued the notes personally, as Zakarian Tax Consultants, but later issued them through a shell real estate company, Viewcrest Properties. Zakarian touted the IRA companies to his clients and misled many clients into believing that they were investing in those companies or that the use of the companies would assure the safety of their investments. Due to Zakarian’s misrepresentations, many clients did not realize their investments involved promissory notes.
THE PAYROLL TAX SCHEME
Zakarian began his separate payroll tax scheme in 2010 that continued through August 2012.
He induced clients to retain Ben Franklin Payroll Service, which he owned and operated, leading them to believe the company would and did file the client’s required employment tax returns and reports and pay the clients’ federal, state and local tax obligations.The funds should have been forwarded to various taxing authorities to pay the income taxes of his clients’ employees. In reality, he failed to file many of the returns and diverted substantial portions of the clients’ funds to pay his own personal and business expenses and invest in highly-leveraged, risky investments with a consistent history of sustaining large losses.
Zakarian attempted to solicit for-profit clients by offering services well below market rates and below his own operating costs, such as a rate of $1 per employee per pay period. Later in 2010, after this failed to generate as many clients as he envisioned, Zakarian developed a new plan to solicit churches, charities and other non-profits through a purported “grant” program. These organizations were targeted as they typically had tight budgets sensitive to payroll costs. Zakarian’s primary objective was to gain access to their operating accounts.
Zakarian began marketing Ben Franklin Payroll Service as being affiliated with Zakarian Charities and the Benjamin Franklin Foundation, organizations established “as an effort to give back to the community.” He offered payroll grants from the Benjamin Franklin Foundation to non-profit organizations to cover two years of free payroll service through Ben Franklin Payroll Service.
To make the grant process appear legitimate, the application required the applicant to submit a one- or two-page narrative history and mission statement, a copy of the IRS tax-exempt determination letter, a list of the Board of Directors, an IRS Form 990 and an annual report, if available. About two weeks after receiving the client’s application, Zakarian sent a congratulatory letter, announcing that the Benjamin Franklin Foundation had awarded a two-year renewable grant.
Rather than forwarding the monies withdrawn to from his clients’ accounts directly to taxing authorities, Zakarian instructed his employees to transfer the tax funds to a Ben Franklin Payroll Service operating account. Clients were sent false quarterly employment tax returns and payroll summaries, giving the false impression that their payroll taxes were being properly handled.
In total, Ben Franklin had at least 72 clients who incurred combined losses of more than $3.4 milllion from Zakarian’s fraudulent diversion of their employment tax funds entrusted to his company. Just over half of the losses were incurred by at least 29 non-profit organizations, with the rest being incurred by at least 43 businesses.
Zakarian also filed false federal income returns for the years 2006 through 2009, failing to report the income he received from the investment scheme. He filed the 2006 through 2008 returns deliquently in December 2009 after the Ohio Division of Securities requested copies. On the 2006 and 2007 returns, Zakarian also falsely claimed substantial losses on the investments he made with the fraudulently obtained client funds, and used those losses to offset other income he earned those years.
If convicted, the defendant’s sentences will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and John M. Siegel, following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Lorain Police Department, and the Lorain County Prosecutor’s Office. The investigators also received assistance from the Ohio Department of Commerce, Division of Securities.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
U.S. Attorney Speaks to American Legion Vermilion Post 29 VeteransRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley was the guest speaker at a special event on April 17, 2013, hosted by the American Legion Vermilion Post 29. The American Legion Vermilion Post 29 held the event to honor women veterans.
During the night’s event, Comrade Jeffery Cessac was presented with the Blue Cap Award by Post 29 Commander Willie Hymel. The Legionnaire Blue Cap Award is a prestigious achievement presented to members with years of service in the Legion. The honor recognizes those who exemplify a lifetime of dedication, leadership, and servitude. Comrade Cessac served in the United States Navy from 1963-1967 during the Vietnam War. He is also a member of the Lions Club, Woodmen of the World and Knights of Columbus.
United States Attorney Finley thanked the veterans for their service and shared how much her career as both the U.S. Attorney and as an officer in the U.S. Air Force had been shaped by the military. Finley reminded those in attendance that they must continue to share their stories of service because they are examples and mentors for future generations. She applauded Post 29 for the work that they are doing to include more women and younger veterans. Among the veterans present were two female veterans who served in Vietnam and during Iraqi Freedom.
“As an officer in the United States Air Force, I am very aware of how lucky we are to have the veterans in our communities and am passionate about recognizing their service,” Finley said. “We owe a debt of gratitude to all of the men and women who serve and have served our nation and safeguarded our freedoms.”
This event is the first of its kind for Post 29, but Commander Willie Hymel and Thomas Thompson, the Judge Advocate for Vermilion Post 29 and a former Assistant United States Attorney, hopes it will not be the last. Commander Willie Hymel served in the United States Marine Corps from 1961-1966 and the U.S. Army Reserves from 1973-2003. Judge Advocate Thomas Thompson served in the U.S. Marine Corps from 1969-1975.
The American Legion is the nation's largest wartime veterans' service organization with a membership of 2.4 million men and women. All veterans of honorable service during a wartime period, and those currently serving on active duty, are eligible to join the American Legion. Congress chartered the American Legion in 1919 as a veterans service organization. The Legion’s primary goal is to protect veteran’s benefits. The American Legion continues to fight for a variety of veteran causes, to include a strong veterans health care system and a strong quality of life for U.S. military members and their families, and although it has an international presence, the Legion is very much a community-based service organization. Among the programs conducted regularly are community Veterans Day and Memorial Day observations, Blue Star Salutes honoring local military families and supportive businesses, American Legion Baseball, Junior Shooting Sports, a High School Oratorical Contest and American Legion Boys State and Nation. The American Legion is one of the nation's largest supporters of Scouting and the largest single donor organization of blood to the American Red Cross. Members of local American Legion posts provide volunteer funeral details to render military honors for fallen comrades. It’s Child Welfare Foundation donates over a quarter of a million dollars each year to worthy children and youth programs and the Legion's National Emergency Fund provides immediate financial assistance to fellow Legionnaires and their families displaced by natural disasters. Legionnaires record over a million volunteer-hours annually in VA medical facilities throughout the nation and they reinvest millions of dollars back into local communities through cash donations.If you are interested in joining a local American Legion Post or are interested in other veterans issues, you can find information on the American Legion website at www.legion.org to locate a Post nearest to you. The American Legion Vermilion Post 29 is located in Abbeville, La., and can be reached at (337) 893-5366 or through their website at www.vermilionpost29.com.
Todd County Man Charged with Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Todd County man has been indicted by a federal grand jury.
Andre DeShazier, a/k/a Andre DaShazier, age 55, was indicted by a federal grand jury on April 12, 2013 for Assault by Striking, Beating and Wounding.
DeShazier appeared before U.S. Magistrate Judge Mark A. Moreno on April 19, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution and a $25 special assessment may also be ordered.
The charge is merely an accusations, and DeShazier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement, U.S. Marshal’s Service and the Federal Bureau of Investigation. Assistant U.S. Attorney Timothy Maher is prosecuting the case.
DeShazier was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.
Texas Doctor Indicted for Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Dallas County, Texas, physician has been arrested and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tariq Mahmood, 61, of Cedar Hill, Texas, was indicted by a federal grand jury on April 11, 2013, and charged with conspiracy to commit health care fraud and seven counts of health care fraud. Mahmood went before U.S. Magistrate Judge John D. Love today for an initial appearance.
According to the indictment, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Shelby Regional Medical Center in Center. From April 2010 to April 2013, Mahmood and others are alleged to have carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes. By means of fraudulent billing practices, the defendant and his co-conspirators are alleged to have unlawfully submitted false claims of more than $1.1 million and obtained more than $375,000.
If convicted, Mahmood faces up to 10 years in federal prison for each charge.The investigation leading to the charges was conducted by agents from the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax Preparer Sentenced to Federal Prison for Preparing False Federal Income Tax ReturnRead the Press Release
ALBUQUERQUE – Frances Rivas, 42, formerly of Albuquerque but currently a resident of Amarillo, Texas, was sentenced this morning to 18 months in federal prison followed by a year of supervised release for her conviction for preparing a false federal income tax return. Rivas also was ordered to pay $98,296.00 in restitution to the IRS and the other victims of her criminal conduct. Rivas’ sentence was announced by U.S. Attorney Kenneth J. Gonzales and Gabriel L. Grchan, Acting Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Rivas pled guilty in Nov. 2012 to Count 16 of a 25-count indictment alleging that she prepared and presented false federal income tax returns. In entering her guilty plea, Rivas admitted that between Jan. 2008 and April 2011, she willfully prepared and presented to the IRS federal tax returns that she knew to be materially false and fraudulent. Rivas further admitted that she altered the tax return information provided by her clients by altering the clients’ filing status, number of defendants, exemptions or W-2 wage information to increase the federal tax refund generated by the return. Rivas unlawfully caused at least $98,396.00 in tax harm as a result of her fraudulent activity.
Rivas was ordered to surrender to a federal correctional institution to be designated by the U.S. Bureau of Prison within 60 days to begin serving her prison sentence.
The case was investigated by the IRS Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Spencer Valley, N.M., Woman Sentenced to 25 Years in Federal Prison for Voluntary Manslaughter Conviction - Defendant Killed a 4-Year-Old Boy in the Heat of Passion and Hid His Body in an Ice ChestRead the Press Release
ALBUQUERQUE – Evelyne James, 53, an enrolled member of the Navajo Nation from Spencer Valley, N.M., was sentenced earlier today to 25 years in federal prison followed by three years of supervised release for her voluntary manslaughter conviction. James also was ordered to pay approximately $3000.00 in restitution. James’ sentencing was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
James has been in federal custody since her arrest in Oct. 2007, on a criminal complaint charging her with murder. She subsequently was indicted on a first degree murder charge in a superseding indictment filed in Oct. 2008. In May 2012, James pleaded guilty to a felony information charging her with voluntary manslaughter and admitted killing a 4-year-old boy in Oct. 2007. At the time, James and her common law husband were acting as guardians of the child victim, who was James' nephew. The prosecution of the case was delayed by mental competency proceedings.
According to court filings, the FBI and Navajo Nation Division of Public Safety initiated an investigation into this case on Oct. 10, 2007, after receiving a report that the body of a young boy had been found. The boy’s body had been placed in an ice chest that was wrapped in a plastic bag and hidden in a structure located next to James' residence in Spencer Valley, which is located within the Navajo Indian Reservation. The investigation revealed that James killed the child victim on or about Oct. 4, 2007, by repeatedly kicking and hitting the child victim. The next morning, when James observed that the child victim was cold and not moving, she put his body in the ice chest and hid the ice chest in the structure. James then told family members that the child victim was with his aunt.
During a consensual search of James’ residence, officers found four letters in which James admitted that she had been abusing the child victim and “over did it,” and then tried to cover up his death because she did not want to go to prison. James later explained to the officers that she acted out of frustration because the child was not potty trained. An autopsy revealed that, among other injuries, the child victim had multiple lacerations to the scalp with underlying new and old skull fractures, new and old rib fractures, and an old hematoma.
Under the terms of the plea agreement, the first degree murder charge was dismissed after sentence was imposed on James.
The case was investigated by the Farmington office of the FBI and Crownpoint Division of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.South Charleston Man Sentenced to More Than 2 Years in Federal Prison for Selling Prescription PainkillersRead the Press Release
Detectives found a loaded .38 caliber pistol hidden in toddler’s bed at the defendant’s home
CHARLESTON, W.Va. – A 40-year-old man who possessed thousands of dollars in cash, hundreds of powerful prescription painkillers, and a loaded firearm inside a toddler’s bed at his South Charleston residence was sentenced today to 27 months in federal prison, announced U.S. Attorney Booth Goodwin. Thomas Henry Banks, Jr., also known as “Fat Cat,” 40, of South Charleston, W.Va., previously pleaded guilty in June 2012 to possession with intent to distribute oxymorphone hydrochloride, also known as “Opana,” and oxycodone, also known as “Roxicodone”. Law enforcement agents from the Metro Drug Enforcement Network Team (MDENT) received a tip that the defendant possessed illegal prescription painkillers and went to his South Charleston home to investigate. At the residence, law enforcement officers found a fully loaded .38 caliber pistol hidden in a toddler’s bed, as well as 165 40-milligram Opana pills and 81 30-milligram oxycodone pills in the defendant’s bedroom.
The $2,851 in cash seized from the defendant’s bedroom was proceeds from illegal drug transactions.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by various federal, state and local law enforcement agencies, remain committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers in communities across the Southern District.
Sixteen People Arrested on Federal Indictment Involving Multi-State Car Theft ConspiracyRead the Press Release
St. Louis, MO - Sixteen people have been arrested on a federal indictment charging twenty-one defendants involved in a multi-state car theft conspiracy. The conspiracy is alleged to have utilized several different schemes to steal and misappropriate vehicles, commit bank fraud in order to obtain vehicles and obtain insurance proceeds by staging accidents and filing false theft reports.
The indictment alleges that the defendants stole luxury automobiles, sports utility vehicles and pickup trucks from individuals and automobile dealerships in the Eastern District of Missouri, Iowa, Illinois and Indiana, which they transported to the Eastern District of Missouri. They disabled any tracking systems, like Onstar, on the stolen vehicles so that they couldn't be traced by law enforcement.
In addition, it is charged that the defendants themselves, or “straw” purchasers, made false statements on loan applications and submitted fraudulent earnings statements in support to obtain loans to purchase typically high-end vehicles. The defendants used and then sold or disposed of the vehicles, while the loan defaulted, either immediately or after a short payment history. According to the indictment, the defendants also practiced fraud related to the titling of vehicles, obtaining by false statements apparently legitimate ownership to vehicles they had stolen from individuals. On many occasions, the defendants falsely claimed to have done repair work which wasn’t actually performed on vehicles submitted to their businesses, inducing lien holders to pay the defendants money to avoid the issuance of a mechanics lien. Over 100 vehicles have been fully identified as being involved in the criminal activity, although investigators believe many more were actually involved.
Arrested today:- SHAHADU SUTTON, St. Louis, MO
- TIFFANY SUTTON, St. Louis, MO
- ORLANDO PRESTON, St. Louis, MO
- WILLIAM SMITH, Highland, KS
- ROBERT REECE, St. Louis, MO
- JOHN HICKS, St. Louis, MO
- REGINALD DAVIS, Florissant, MO
- STEVEN PIRTLE, St. Louis, MO
- SHELDON MITCHELL, Ballwin, MO
- CHESTER WILSON, St. Louis, MO
- ARVIS DUNBAR, St. Louis, MO
- EUGENE DUNBAR, St. Louis, MO
- MICHAEL SMITH, Florissant, MO
- TERRELLE MARION, Florissant, MO
- JERMAINE GAMBLE, Custody
- JOSEPH PEARSON, St. Louis area
Charges include conspiracy, bank fraud, mail fraud and receipt of stolen motor vehicle. If convicted, these charges carry penalties ranging from 5 to 30 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, United States Postal Inspection Service, St. Louis Metropolitan Police Department, St. Louis County Police Department, Missouri State Highway Patrol, Maplewood Police Department, Missouri Department of Revenue and other municipal police departments, with assistance from the National Insurance Crime Bureau. Assistant United States Attorneys John Ware and Stephen Casey are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sexual Predator Sentenced to Life ImprisonmentRead the Press Release
PHOENIX, Ariz. – On April 22, 2013, Jefferson Gatewood, 44, of Carrizo, Ariz., and a member of the White Mountain Apache Tribe, was sentenced by U.S. District Judges James A. Teilborg to 14 consecutive terms of life imprisonment. Gatewood was convicted at trial by jury on Nov. 20, 2012, of 23 counts of aggravated sexual abuse and related charges, mostly involving minors, on the Fort Apache Indian Reservation
Gatewood was previously convicted of assault with intent to commit rape in an Arizona U.S. District Court in 1987, after he and two codefendants gang-raped a 19-year-old girl at knifepoint.
At trial, 15 victims testified that Gatewood had sexually abused them, and physically abused some of them as well. At the time they were abused, the victims ranged in age from 5 years old to their early 20s. Gatewood’s abuses began nearly 30 years ago, when he was still a teenager, and continued on a regular basis until 2010 when this investigation was initiated.
The indictment charged Gatewood with sexually abusing nine young girls and teens dating back to 1992. Other sexual assaults were either barred by the statute of limitations or took place off of the reservation and out of the jurisdiction of the federal court. Nonetheless, the victims of the uncharged assaults were allowed to testify at trial regarding their victimization pursuant to the Federal Rules of Evidence.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The prosecution was handled by Dimitra H. Sampson and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-11-8074-PCT-JAT
RELEASE NUMBER: 2013-034_GatewoodFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Salinas Resident Pleads Guilty to Tax FraudRead the Press Release
SAN JOSE – Richard Anello pleaded guilty yesterday to filing a false income tax return, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Jose M. Martinez, announced.
According to his plea agreement, Anello was a fifty percent owner of Marco Warehouse Corp. Marco Warehouse Corp. operated under the trade names Salinas Valley Public Warehouse and Monterey Wine Warehouse. Anello was in charge of the daily operations, and at various times held the title of secretary or president of Marco Warehouse Corp. Anello was also a twenty-five percent owner and president of Adonis Transport Inc.
During 2006, as president of Marco Warehouse Corp., Anello wrote, or caused to be written, checks payable to a Salinas bodega, drawn on Marco Warehouse Corp.’s business bank account at Bank of America. Anello, or individuals at his direction, went to the bodega and cashed these checks and additional checks made payable to “Cash.” Anello then directed that these checks be falsely categorized on Marco Warehouse Corp.’s business records as fuel expenses. The bodega does not sell fuel and Anello knew and understood that the cash obtained from the bodega in this manner was not used to purchase fuel. Some of the cash obtained in this manner was used to purchase legitimate business goods. However, a significant amount of the cash obtained was used for personal expenditures. As a result, the 2006 U.S. Income Tax Return for Marco Warehouse Corp. was false because it claimed fuel deductions that included $944,000 that was obtained by cashing checks at the bodega.During 2005 and 2007, Anello also cashed a substantial number of checks payable to the bodega or “Cash”, and falsely categorized these checks on Marco Warehouse Corp.’s business records as fuel expenses in the amount of $340,600 in 2005, and $885,800 in 2007.
In addition, Anello cashed a substantial number of checks at the Salinas bodega, drawn on Adonis Transport Inc.’s business bank account, payable to the bodega or “Cash”. These checks were then falsely categorized on Adonis Transport Inc.’s business records as fuel expense. Anello obtained the following amounts of cash in this manner from Adonis Transport Inc.’s business bank account: $815,000 in 2005; $736,800 in 2006; and $409,000 in 2007.
Anello, 61, of Salinas, California was charged on March 21, 2013 with one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). He pleaded guilty to the one count. The maximum statutory penalty for filing a false tax return in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Matthew Kluge, Trial Attorney, U.S. Department of Justice, Tax Division, and Thomas Moore, Assistant U.S. Attorney, are the attorneys who are prosecuting this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Rosebud Woman Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Toni Good Shield, a/k/a Toni Little Thunder, age 29, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 16, 2013 and pled guilty to Assault Resulting in Substantial Bodily Injury.
The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on February 7, 2013 when Good Shield kicked the victim causing a fracture to her left leg and a bloody nose.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for July 8, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rosebud Woman Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Toni Good Shield, a/k/a Toni Little Thunder, age 29, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 16, 2013 and pled guilty to Assault Resulting in Substantial Bodily Injury.
The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on February 7, 2013 when Good Shield kicked the victim causing a fracture to her left leg and a bloody nose.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for July 8, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rosebud Man Indicted for Maiming and AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury.
Kenneth Black Wolf, age 24, was indicted by a federal grand jury on April 12, 2013 for Maiming, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Black Wolf appeared before U.S. Magistrate Judge Mark A. Moreno on April 19, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charges are merely accusations, and Black Wolf is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Black Wolf was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.